Valuation and Characteristics of Bonds, complete the problems:

A. Internal Growth Rate

Assume a firm has net income of 2 million SAR this year. The book value of common equity is 8 million SAR. The company's dividend payout ratio is 50% and is expected to remain this way. What is its internal growth rate?

B. Yield to Maturity

Assume the market price of a 5-year bond for MMT, Inc. is 900 SAR, and it has a par value of 1,000 SAR. The bond has an annual interest rate of 6 percent that is paid semiannually. What is the yield to maturity of the bond? (( Hint, in the end the Yield to Maturity should be 8.54%))